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How to offset tax liability using ITC of capital goods?

ITC / Input 393 views 4 replies

Hi all, 

I got bought few machineries and using for both taxable & exempt purpose. 

I had claimed the full ITC in the purchased month. 

How & where to show ITC reversal for capital goods every month proportional to exempt turnover. 

And when I try to offset tax liability with ITC available for every month from capital goods(60 months), the system shows use full ITC to offset liabilities. how we can use full ITC from capital goods as per rule we need to use it over 60 months

Thanks in advance

Replies (4)

You have reverse ITC  in Table 4 (B) (1)  of  GSTR3B . 

You have to  reverse ITC on Capital  Goods  as per  the Rule 43 of  the CGST  rules 2017 . 

Reverse ITC in table 4
Originally posted by : prasad Nilugal
You have reverse ITC  in Table 4 (B) (1)  of  GSTR3B . 

Thanks for the reply. So every month have to calculate according to turnover and do right?

And one more doubt regarding offset. Since we claimed full ITC at starting itself. As per rule we have to divide over 60 and months & take ITC. During tax liability set off, system asking to use the full capital ITC available. How to proceed there


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